NZD/USD Forex Technical Analysis – Weakens Under .6655, Strengthens Over .6689

The New Zealand Dollar is trading slightly better on Wednesday after posting a two-sided trade the previous session. The Kiwi was pressured on Tuesday by a lower Australian Dollar and a stronger U.S. Dollar.

The Kiwi was dragged down by a weaker Aussie Dollar, which was pressured by a row with Beijing over coal imports. Additionally, the U.S. Dollar rose against both currencies as risk appetite weakened after Johnson & Johnson said on Tuesday it is pausing a clinical trial of a coronavirus vaccine and Eli Lilly and Co also said it paused a coronavirus antibody treatment.

At 01:08 GMT, the NZD/USD is trading .6661, up 0.0012 or +0.18%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .6673 will signal a resumption of the uptrend. The main trend will change to down on a trade through .6547.

The short-term range is .6798 to .6512. Its retracement zone at .6655 to .6689 is resistance. Last week’s rally stopped inside this zone at .6673.

The minor range is .6547 to .6673. Its 50% level at .6610 is the primary downside target and potential support level.

The main support is the retracement zone at .6589 to .6540. This zone is controlling the longer-term direction of the Forex pair.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the NZD/USD on Wednesday is likely to be determined by trader reaction to the short-term 50% level at .6655.

Bullish Scenario

A sustained move over .6655 will indicate the presence of buyers. The first upside target is .6673, followed by the short-term Fibonacci level at .6689. The latter is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under .6655 will signal the presence of sellers. If this move is able to generate enough downside momentum then look for the selling to possibly extend into the minor pivot at .6610.